Autel(SH:688208) Tianfeng Securities·2025-10-29 03:12Investment Rating - The investment rating for the company is "Buy" with a maintained rating for the next six months [5]. Core Insights - The company achieved a significant year-on-year growth in net profit attributable to shareholders, with a 57.5% increase in Q3 2025, continuing a strong profit growth trend [1]. - The company is integrating AI into its diagnostic business, which is expected to enhance product capabilities and drive software sales [2]. - The company aims to become a global leader in smart energy and integrated air-ground AI solutions, targeting industries such as energy and transportation [3]. - Revenue projections for 2025-2027 have been adjusted upwards, with expected revenues of 50.98 billion, 63.84 billion, and 78.76 billion respectively, alongside net profits of 9.33 billion, 11.5 billion, and 14.11 billion [3]. Financial Performance - For the first three quarters of 2025, the company reported revenues of 34.96 billion yuan, a 24.7% increase year-on-year, and a net profit of 7.33 billion yuan, up 35.49% [1]. - The gross margin for Q3 2025 was 57.43%, an increase of 2.44 percentage points year-on-year, attributed to AI-driven cost reductions and value enhancements [1]. - The company’s sales expense ratio decreased to 9.6%, while the R&D expense ratio increased to 16.71%, reflecting a commitment to AI strategic investments [1]. Profitability Forecast - The company’s earnings per share (EPS) are projected to be 1.39 yuan in 2025, increasing to 2.11 yuan by 2027, with corresponding price-to-earnings (P/E) ratios of 27.57, 22.38, and 18.24 for the years 2025, 2026, and 2027 respectively [4][3].